Fitch affirms Sempra

Fitch Ratings said it affirmed Sempra Energy's ratings following its announcement of an energy trading joint venture with Royal Bank of Scotland.

Fitch affirmed Sempra's long-term issuer default and senior unsecured ratings at A.

The outlook is stable.

Fitch said it believes SRE Commodities was a natural extension of SRE's power and energy businesses and did not detract from the overall financial and credit profile of SRE.

The issuer's ratings are based on the stability and predictability of cash flow from its California operations, credit metrics and disciplined approach to investing and capital spending. The ratings consider the financial strength of its California utilities, supportive regulatory environment, strong regional economy and minimal commodity price exposure.

The stable outlook reflects Fitch's expectation that credit metrics may weaken slightly over the next five years with an $11 billion capital spending program but stay within its current rating category.

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